Piper Sandler raises Starbucks stock price target to $105 on accelerated service model rollout

Published 30/07/2025, 16:58
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Investing.com - Piper Sandler raised its price target on Starbucks (NASDAQ:SBUX) to $105.00 from $102.00 on Wednesday, while maintaining an Overweight rating on the stock. The coffee giant, currently trading at $92.50 with a market capitalization of $105 billion, has shown strong momentum with a 25% return over the past year. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

The adjustment follows Starbucks’ release of its third-quarter 2025 financial results and subsequent earnings call with investors and analysts.

Piper Sandler noted a significant development in Starbucks’ operational strategy, as the coffee chain is accelerating the deployment of its Green Apron service model across its U.S. locations.

The company plans to implement the new service model throughout its entire U.S. store fleet by mid-August, which represents a substantially faster rollout than previously communicated to investors.

According to Piper Sandler, this accelerated implementation "has the potential to change the traffic trajectory sooner than expected" for the coffee retailer.

In other recent news, Starbucks reported fiscal third-quarter earnings per share of $0.50, falling short of consensus estimates by $0.15. BMO Capital attributes part of this miss to one-time investments and discrete tax items, while also noting lower equity income and slightly softer comparable sales. Despite this, BMO Capital raised its price target for Starbucks to $115, maintaining an Outperform rating due to the company’s turnaround progress. UBS also adjusted its price target for Starbucks to $100 from $95, citing ongoing challenges in U.S. same-store sales and traffic trends, while maintaining a Neutral rating. Stifel reiterated its Buy rating with a $105 price target, emphasizing the progress in Starbucks’ "Back to Starbucks" initiative, which focuses on operational changes and innovation. TD Cowen raised its price target to $95 from $90, based on expectations of lower labor costs affecting future earnings positively. Bernstein also maintained an Outperform rating with a $100 target, highlighting Starbucks’ menu innovations as a potential driver for attracting new consumers and increasing sales. These developments reflect a mix of cautious optimism and strategic adjustments among analysts regarding Starbucks’ future performance.

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